First we will take a look at the copper’s latest 6-month chart on which we can see that it started to break out of its recent consolidation pattern just yesterday…
Now let’s remind ourselves of the reason that copper is set to accelerate to the upside by looking again at the chart posted in yesterday’s article which shows how it is getting very close to breaking above an upsloping line of resistance to join gold and silver in their parabolic uptrends…
Now we will look at a number of vehicles that will enable you to capitalize on the expected accelerating uptrend in the copper price, if you so choose. We will look at 4 ETF’s that move with the copper price which is enough for our purposes given that we are mainly interested in gold and especially silver. A couple of general points to make are that 3 of these were little affected by the smackdown in the copper price at the end of July on the CME while the 4th one, the United States Copper Index Fund, took a big hit. All of them have already begun major new uplegs in anticipation of a big advance in the copper price. Since their charts are so similar they don’t require individual descriptions, although it is worth pointing out that the movements of the United States Copper Index Fund are almost identical to copper itself on the CME. Two of them are Sprott ETFs, one for normal copper stocks and the other for juniors which is more leveraged.
Global X Copper Miners ETF COPX, $67.47
The long-term chart for Global X Copper Miners ETF shows that it has at last broken clear of its 2011 highs and thus has no overhanging supply…
Sprott Copper Miners ETF COPP, $32.41
Sprott Copper Miners ETF only started trading early last year, so there is not so much history, but what there is, is positive, and we can see that it is in a powerful uptrend and has just broken out of a fine bull Flag to make new highs with the strong uptrend looking set to continue…
Sprott Junior Copper Miners ETF COPJ, $39.34
Sprott Junior Copper Miners ETF only started trading early last year, so there is not so much history, but what there is, is positive, and we can see that it is in a powerful uptrend and has just broken out of a fine bull Flag to make new highs with the strong uptrend looking set to continue. The chart is similar to the Sprott Copper Miners ETF, COPP, above except that it is a more leveraged play that makes bigger gains…
United States Copper Index Fund CPER, $33.03
The long-term chart for the United States Copper Index Fund looks potent, for after stuggling to break clear above the 2012 highs for a long time, it is finally succeeding in doing this and with copper looking poised to accelerate to the upside, it looks set to do likewise.
End of article.
Posted at 6.25 am EST, long-term charts added at 2.55 pm on 4th December 25.